7 Employee Engagement Statistics Worth Considering

Numbers can tell the story about why employee engagement matters.

Here are some surprising statistics about employee engagement.

• Organizations with higher levels of engagement report a 22% increase in productivity. HBR

  Engaged employees are more motivated, committed, and aligned with organizational goals. They tend to take initiative, collaborate effectively, and produce higher-quality work, which directly boosts overall efficiency and output.



• 8.8 trillion is the true cost of employee disengagement around the world. Forbes

  The $8.8 trillion cost of global employee disengagement reflects lost productivity, turnover, absenteeism, and reduced innovation. Disengaged employees contribute less, lack motivation, and can negatively impact team morale, leading to substantial financial and operational inefficiencies for organizations worldwide.



• Engaged workforces experience 41% less absenteeism. Gallup

  Engaged workforces experience 41% less absenteeism, partly because engagement fosters better mental and physical health, reducing healthcare-related absences. Employees who feel valued are less likely to experience stress-related illnesses, cutting down on healthcare costs and minimizing productivity losses from sick days.



• U.S. employers face an annual cost of $2,945 per employee due to productivity losses caused by absenteeism and presenteeism resulting from chronic illnesses and injuries. Kaiser Permanent

  These costs arise from missed workdays and reduced efficiency when employees are present but unwell, highlighting the need for workplace wellness initiatives to mitigate these impacts.



• Employee turnover costs businesses $1 trillion each year. Gallup

  (“The cost of replacing an individual employee can range from one-half to two times the employee's annual salary.”) Organizations incur expenses from recruitment, training, and lost productivity. High turnover disrupts workflows, reduces team morale, and increases operational inefficiencies, emphasizing the importance of retention strategies to minimize these costly impacts.



• 42% of turnover is preventable. Gallup

  Preventable turnover, accounting for 42% of employee departures, often stems from factors like poor management, lack of recognition, and limited growth opportunities. Addressing these issues through better leadership, employee engagement, and development programs can significantly reduce turnover and associated costs.



• Over 50% of surveyed workers say that purposeless meetings are the number one cause of fatigue. SHMR

  Many organizations, particularly with remote workers, have meetingitis. Beware, because they drain time and energy without adding value. Reducing unnecessary meetings and ensuring clear objectives can boost productivity and employee morale.